Judge: Kevin C. Brazile, Case: BC623542, Date: 2022-10-31 Tentative Ruling

Hearing Date: October 31, 2022

Case Name: SP Investment Fund I, LLC v. Levinson, et al.

Case No.: 20STCV49845

Matter: Motion to Substitute Defendant 

Moving Party: Plaintiff SP Investment Fund I, LLC

Responding Party: Patrick V. Walsh

Notice: OK

Ruling: The Motion is granted in part.

Moving party to give notice.

If counsel do not submit on the tentative, they are strongly 

encouraged to appear by LACourtConnect rather than in person due to the COVID-19 pandemic. 

Because Defendant Fred F. Levinson has passed away, Plaintiff SP Investment Fund I, LLC seeks to substitute Patrick V. Walsh, both in his capacity as executor of the Estate of Levinson and as Successor Trustee of Fred F. Levinson’s Revocable Trust, in place of Defendant Levinson.  

Walsh does not oppose his substitution as executor, but contests the validity of his substitution as trustee.  

Plaintiff argues that Walsh should also be added as trustee because Levinson’s estate is insolvent.  Plaintiff relies on Probate Code § 19001(a), which states, “Upon the death of a settlor, the property of the deceased settlor that was subject to the power of revocation at the time of the settlor's death is subject to the claims of creditors of the deceased settlor's probate estate and to the expenses of administration of the probate estate to the extent that the deceased settlor's probate estate is inadequate to satisfy those claims and expenses.”

It is not apparent that Walsh should be substituted as a Defendant in his capacity as trustee.  This is because there is no judgment existing against Levinson’s estate.  (See Arluk Med. Ctr. Indus. Grp., Inc. v. Dobler (2002) 116 Cal.App.4th 1324, 1335 [“If the claimant prevails and obtains a judgment in its favor, the judgment is payable in the ordinary course of the administration of the estate. (§ 9300.) If the estate is inadequate to satisfy the judgment, the judgment creditor may proceed against the assets in the settlor's revocable living trust. (§ 19001, subd. (a).)”].)  

The Motion is granted in part.  Specifically, Walsh as executor—but not as trustee—shall be substituted as Defendant.

Moving party to give notice.

If counsel do not submit on the tentative, they are strongly encouraged to appear by LACourtConnect rather than in person due to the COVID-19 pandemic.